Busy year ahead for Chinese Tesla challengers Nio, Xpeng, as industry body forecasts 40 per cent rise in deliveries

The China Association of Automobile Manufacturers sees sales of NEVs topping 1.8 million units next year, up from around 1.3 million in 2020

Sales will be bolstered by government support for the industry, economic growth and strong promotional campaigns by carmakers, analysts predict

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Employees install batteries on an electric SUV at the Nio production facility in Hefei, Anhui province, China. Photo: Bloomberg

Published: 8:00pm, 14 Dec 2020Updated: 3:41pm, 26 Jan 2021

China’s new-energy vehicle (NEV) manufacturers can expect to be busy next year if an industry forecast of a 40 per cent sales increase proves accurate.

The China Association of Automobile Manufacturers (CAAM) sees sales topping 1.8 million units next year, compared to an estimated 1.29 million units for the whole of 2020, bolstered by Chinese drivers’ mounting interest in green cars.

The forecast includes purely electric, petrol-electric hybrid and fuel-cell powered vehicles.

“China’s automotive industry will [enjoy] tremendous opportunities as the national economy continues to expand at an orderly pace, local governments remain adamant in encouraging use of NEVs by launching more incentives, and car companies maintain their promotional campaigns to lure customers,” Xu Haidong, vice-chief engineer at CAAM, told an automotive industry forum in Beijing at the weekend, according to the association’s website.

Tesla is now the runaway leader in the premium segment of mainland China’s electric car market owing to strong sales of its locally-built Model 3 sedans that began deliveries at the beginning of this year.